Yearn Finance is a suite of products in Decentralized Finance (DeFi) that provides lending aggregation, yield generation, and insurance on the Ethereum blockchain. The protocol is maintained by various independent developers and is governed by YFI holders.
Yield farming
Yield farming, also referred to as liquidity mining, is a way to generate rewards with cryptocurrency holdings. In simple terms, it means locking up cryptocurrencies and getting rewards. In some sense, yield farming can be paralleled with staking. However, there’s a lot of complexity going on in the background.
YFII
- DFI.Money (YFII) is a Decentralized Finance (DeFi) platform which aims to build products on aggregated liquidity provision, leveraged trading, automated marketing making, and more.
- DFI.Money (YFII) is a fork of yearn.finance (YFI), after yEarn Improvement Proposal #8 (YIP-8) which proposed to prolong the minting of the platform utility token YFI by another 2 months and with a weekly-halving emission curve was rejected.
- The YFII token is the native utility token of the DFI.Money platform. Users can earn it by contributing liquidity to DFI.Money’s aggregated liquidity pool, and use the token for platform governance.
- DFI.Money currently provides a profit optimizing service for lending providers, moving providers’ funds between lending protocols such as Aave, and Compound autonomously for highest return. Future strategies are being developed in its vaults section.